Kenneth Rosenberg

Two consortiums of proposed Class Counsel brought competing motions for carriage of a proposed competition law class action against several German automobile manufacturers.

The underlying actions alleged that the defendants engaged in an anti-competitive conspiracy relating to automotive design, development, manufacturing, and marketing.

The court evaluated the competing litigation plans and case theories, noting that both were viable but that the Quenneville action presented a superior, more creative, and more developable case theory that appropriately included claims for deceptive marketing under the Competition Act.

The court granted carriage to the Quenneville action and stayed the competing Stibbe action.

The Ontario Plaintiffs brought a motion for approval of a $117 million settlement and release of claims against Ernst & Young LLP within the CCAA restructuring of Sino-Forest Corporation.

Several institutional investors objected, arguing that the settlement improperly extinguished their opt-out rights under the Class Proceedings Act and that the third-party release was not justified under the CCAA.

The court approved the settlement and release, finding them fair, reasonable, and rationally related to the restructuring plan.

The court held that claims compromised within a CCAA proceeding do not afford opt-out rights, and the settlement provided a substantial benefit to stakeholders.